P2 Int exam tips – June 2013 (Bpp, Kaplan , LSBF, First Intuition, Becker)

Exam tips are out! Enjoy but do not rely on them.

Kaplan

Q1 Groups and ethics

A SOFP has been examined for in the last 4 examinations (both exams in 2011 and 2012) – perhaps it is time for
a GSOCI (QBD) or a statement of cash flows (revision mock) group accounting question. In either event, it is
likely to include a change in group structure (acquisition and/or disposal of subsidiary in the year). Accounting
issues possibly examined within this question include:
– Financial instruments
– Joint arrangements
– Foreign currency
The ethical issue will normally focus upon an incorrect or inappropriate accounting treatment in the group
accounts question. As IFRS 10/11/12 are relatively new, it could focus upon determination of whether one
entity has control over another, and whether an appropriate accounting treatment has been applied.

Q2 and Q3

Possibly a focus upon P2-only reporting standards, and those which require the exercise of judgement.
Accounting issues possibly examined here include:
– IAS 19 Employee benefits – in revision mock
– IFRS 2 Share-based payment – in revision mock
– IFRS 9 & IAS 39 Financial instruments – including hedging – in QBD
– Entity reconstructions including accounting issues – in the revision mock as not yet examined since it
was included in the syllabus in 2011.

Q4 – Essay-style question

This is difficult to call. I was going to include a question in the revision mock or QBD dealing with current
developments in hedging, but at the Examiners’ Conference, in answer to a question about how likely or
detailed such a question could be in an exam, it was described as “horrific” and ,my only attract a small number
of marks within a bigger question.
Instead, the focus is perhaps more likely to be on current standards which may be lacking or deficient in some
way – hence drafting a question for QBD dealing with revenue recognition and leasing in one question.
Although this is unlikely to be the format of such a question, it does represent “hedging bets” by covering two
topics in the same question. The essay-style question in the revision mock deals with clutter in company
accounts – something the Examiner made specific reference to at the Conference.

BPP

There will be 4 questions. The compulsory question for 50 marks will cover consolidated financial statements with adjustments on other syllabus areas, plus written parts, often in the context of accounting adjustments and ethics.
You need to do two of the three 25 mark questions in section B of the exam, one of which is normally set in the context of a ‘specialised industry’ and one being a discussion question on current developments. A statement of profit or loss and other comprehensive income (with/without a statement of financial position) or a statement of cash flows seem likely for this sitting and could include discontinued activities, disposals and acquisitions and a joint venture/associate, while the issue of too much disclosure (see examiner article ‘Bin the clutter’), management commentary, application of the definition of control, improvements in performance measurement, conceptual framework or leasing are possibilities for the discussion question.

Opentuition

Question 1

Either cash flow or foreign consolidation ( I’m preferring cash flow! ), some corporate governance element and / or some ethics

Question 2

A “Various IAS / IFRS” question – 4 or 5 tricky areas where the directors are proposing to follow their preferred treatment, but they are probably wrong. Need to explain how / why they are wrong

Question 3

Similar to question 2 with IFRS and IAS covering such as Share based payments, Employee benefits, Leasing ( recent article in Student Accountant ), Revenue

Question 4

Management commentary, publication of KPIs, mandatory or voluntary, potential problems with the concept of “effective control” where an investor holds, say, 35% and auditor maintains that this is effective control but directors refute it

LSBF

* Group income statement or cash flow statement.
* Possibly two mix questions with the usual suspects of goodwill provisions financial instruments and sbp and the rest.
* Current issues including leases Smes and jvs.

First Intuition
* Q1: Group question on disposals, piecemeal acquisitions or cashflow.
* Ethics.
* Revenue recognition – current issue.
* Deferred tax.
* Share based payments.

Becker
• Consolidation in Q1.
• Disposals & complex groups.
• Step acquisitions.
• Cash flow.
• Foreign sub.
• Complex.
• Financial instruments (IAS 39/IFRS 9) including hedging.
• Employee benefits (IAS 19), amended in 2011.
• Leases (IAS 17).
• Share-based payments (IFRS 2).
• Impairment of assets (IAS 36).
• Deferred tax (IAS 12).

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Source: https://www.pqaccountant.com/
https://www.kaplan-exam-tips.com/acca/

Very best of luck with your exams!
ansi